High CIBIL score after settlement, loan rejected

I have a score of 700+ on CIBIL (I had taken out a report on my own by paying online at CIBIL). My recent application for a Personal Loan at ICICI Bank was rejected. The reason given to me that there is a settlement in my account that happened some time back. because of this, my loan has been rejected.

Is this possible? Isnt credit score the only indicator banks look at for evaluating a profile? How can an old settlement case be reason for loan rejection when my score is so high

  • admin

    While CIBIL or Credit Score is used as an important criteria by banks and NBFCs to decide on whether to extend you a loan or not. It is NOT the only criteria.

    Also note that the final decision rests with the bank or rather its credit or risk teams. If the bank feels that there is something in your profile that makes you a risky candidate, your application will be declined or in some case the applicable interest rate would be increased or the loan amount decreased.